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Open Forum: Answering your Self-Directed Account Questions

Directed IRA Podcast

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How to Invest in a Partnership

Jerry: Can I use my solo 401k to invest in the business? My 401k would be a one third owner. Jerry: Because it's one third and you've got three partners and you're a total ownership between your solo k or 401k and yourself, no matter how you do it, is going to be one third or less. He says there is some privative transaction risk here because depending on the IRS agent or tax court judge,. they could look at this and say, was this compensation or taking fair? Was that an investment amount you put in fair?

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